THE ROUNDTABLE DISCUSSION ON ESG AND SUSTAINABILITY IN THE SUPPLY CHAIN
CLOSING REMARKS BY YAB CHOW KON YEOW
THE CHIEF MINISTER OF PENANG CUM
CHAIRMAN OF PENANG GREEN COUNCIL
THE ROUNDTABLE DISCUSSION ON ESG AND SUSTAINABILITY IN THE SUPPLY CHAIN
9TH MAY 2023 | E&O HOTEL, PENANG
YB. Dato’ Haji Abdul Halim bin Haji Hussain
Penang State EXCO for Trade, Industry & Entrepreneur Development
Ms. Josephine Tan Mei Ling
General Manager of Penang Green Council
Ms. Shanta Helena Dwarkasing
Director of Programs, UN Global Compact Network Malaysia & Brunei (UNGCMYB)
Members of media
Ladies and gentlemen
Good morning to everyone and thank you for taking time out of your busy schedules to attend this roundtable discussion.
I think today’s fruitful conversations has proven to be crucial for Penang, as there is nothing more relevant right now than the quest for viable climate solutions. Most nations in the world, including Malaysia, have made their commitments towards achieving net zero carbon emission by 2050.
The term Environmental, Social, and Governance (ESG), which originated in 2004 with the publication of a report titled “Who Cares Wins” by the United Nations (UN) Secretary General and UN Global Compact in collaboration with the Swiss Government, has since given investors a broader perspective for making sound investment decisions. It goes beyond mere profit margins and encompasses the profound impact that businesses have on society and the world as a whole.
In propelling the ESG agenda, it is imperative to foster a multi-stakeholder collaboration. This rings especially true in Penang, particularly among our small and medium-sized enterprises (SMEs). Therefore, I express my heartfelt appreciation for your presence here today, as it provides a valuable opportunity to reflect on our current progress and the tasks that lie ahead in supporting ESG.
Ladies and gentlemen,
There is no doubt that both the government and private sectors need to work together to build a sustainable and resilient supply chain. Penang, known as the Silicon Valley of the East, recognises that corporate sectors like all of you here today – MNC, LLCs and PLCs can set the tone from the top and institute best sustainability practices.
While we often focus more on the environmental (E) and social (S) pillars, it is equally crucial to emphasize on good governance (G), as it forms the foundation of corporate environmental stewardship and social responsibility. However, these do not stop here.
Sustainability also encompasses on inclusiveness of all stakeholders, including our supply chain. So, with leaders and senior managements personnel here with us today, I hope that you can be the game-changers who ensure Penang's global progress in ESG conversations.
As the chief minister of Penang, I have made my commitment to ensure ESG growth in the state with the establishment of the Penang Green Industry Programme championed by the Penang Green Council (PGC).
Our goal is to transform Penang into a green manufacturing hub by building platforms with various organisations and partnership programme among SMEs and MNCs based in Penang. Given the multiplicity of international sustainable frameworks, we are here to facilitate the green transition of local SMEs, which are recognised as the bloodline of our economy and suppliers to many MNCs based in Penang.
For Penang to remain competitive and continue to attract foreign investors, it is important for our local SMEs to embrace ESG. However, SMEs would need all the support and guidance they could get from government and private sectors. ESG also needs to be seen by SMEs as an opportunity rather than a compliance issue or threat.
Ladies and gentlemen,
Allow me to reiterate that all MNCs, LLCs and PLCs play an integral role in our endeavour to co-exist sustainably alongside our supply chain in today’s modern world. For companies, a supply chain entails seeking out the finest suppliers worldwide who can deliver products at the right price, in the required quantity, and within the specified timeframe.
However, recent years have witnessed innovative transformations within the supply chain. Companies have embraced the concept of a circular economy and implemented reverse supply chain practices that involve reclaiming post-consumer materials, recycling them, or repurposing them as new raw materials.
By embracing these progressive approaches, sustainability becomes a malleable term within the supply chain. It signifies voluntary efforts by industries and investors to enhance environmental, social, and governance (ESG) practices from the top down. And for companies that take it seriously, it's an attempt to square the circle, of how do global buyers and their investors and manufacturers maintain, grow their markets and profit margins, or in some cases just stay in business.
Accordingly, I hope that your management level will understand the importance and requirements of ESG, initiate the adoption within and amongst your business circles, and communicate with your supply chain and clients about your expectations on ESG.
It is critical to recognize that sustainability goes beyond saving the planet; it is also about safeguarding humanity and our collective future. Thus, it necessitates a concerted effort to strive for social equity, so that no one is left behind as we move towards a net-zero future.
On that note, I am delighted to extend an invitation to all MNCs, LLCs and PLCs here today to work together with the Penang State Government on ESG-related programmes. This includes the Penang Green Industry Programme, spearheaded by the Penang Green Council (PGC), as well as other government initiatives such as the water-saving program initiated by the PBA, and various endeavours undertaken by our local councils.
I sincerely hope that today's discussions, initiated by the Penang Green Council and the UN Global Compact Network Malaysia & Brunei (UNGCMYB), will mark the beginning of an ongoing dialogue. Only by working together can we advance the adoption and implementation of ESG practices in Penang.
With that, thank you all for your unwavering support and dedication to the cause of sustainability.